Market Information Friday 25 November 2022

Market Information Friday 25 November 2022

Sweden’s central bank, the Riksbank, raised interest rates by 75 basis points from 1.75 to 2.50% on Thursday. Inflation is still far too high and the risk of that high inflation becoming entrenched is still substantial, according to the Riksbank. The Riksbank foresees an economic contraction of 1.2% next year, where previously a contraction of 0.7% had been forecast.

The Tokyo core consumer price index was 3.6% higher in November than a year earlier, government data showed on Friday. The rise exceeded a median market forecast of 3.5% and the 3.4% increase seen in October. While the rise was driven mostly by electricity bills and food prices, companies were also charging more for durable goods as the weak yen pushed up the cost of imports, the data showed.

The Turkish central bank announced on Thursday that it would cut the policy rate again by 150 basis points, from 10.5 to 9.0%, and announced that this would be the last of the rate cuts in this cycle for the time being. Taking into account increasing risks to global demand, the Turkish central bank assessed that the current policy rate is appropriate. A recession is increasingly seen as an inevitable risk factor, the central bank stated.

The 6M Euribor increased with 2 basis points to 2.36% compared to previous business day. The 10Y Swap decreased with 8 basis points to 2.57% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 24 November 2022

Market Information Thursday 24 November 2022

The number of Americans filing new applications for unemployment benefits rose to the highest level in three months last week due to increasing layoffs in the technology sector. Applications for unemployment benefits rose 17,000 last week to a seasonally adjusted 240,000. In addition, the previous week’s figures were revised upward by 1,000. Economists say applications would have to exceed 270,000 to raise concerns about the labor market.

China will cut banks’ reserve requirements in a timely manner, in addition to using other monetary policy tools, to keep liquidity sufficiently high, state media said Wednesday at a cabinet meeting. Hit by COVID-19 restrictions and a sharp drop in the property market, China’s economy is struggling to get back on track, even after a spate of policy measures this year to boost domestic demand.

ECB Vice President Luis de Guindos said the European Central Bank will continue to raise interest rates until inflation is brought down to the medium-term target of 2%, even as the euro zone economy heads toward recession. De Guindos did not elaborate on the size of the possible next interest rate hike in December, but said it would depend on the upcoming ECB forecasts and inflation data in November.

The 6M Euribor increased with 1 basis point to 2.34% compared to previous business day. The 10Y Swap decreased with 5 basis points to 2.65% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Wednesday 23 November 2022

Market Information Wednesday 23 November 2022

Eurozone consumer confidence continued to improve in November but remained in negative territory. This was revealed on Tuesday by preliminary figures from the European Commission. The index, which reflects confidence, improved to -23.9 this month from -27.5 in October. Economists consulted in advance expected a smaller improvement to -26.6.

Global steel production did not change substantially in October. This was revealed on Tuesday by figures from industry body World Steel Association. In total, the 64 steel-producing countries manufactured 147.3 million tonnes of steel last month, roughly the same as a year earlier. September saw a 3.7% increase in production. In China, by far the largest manufacturer of steel worldwide, production rose sharply. There, production rose 11.0% last month to 79.8 million tonnes. By contrast, in the US, production fell 8.9% in September, to 6.7 million tonnes. In Russia, production fell an estimated 11.5% and in Japan it fell 10.6%. The EU experienced a 17.5% contraction in production in September to 11.3 million tonnes. In Germany, production fell more than 14%.

The Reserve Bank of New Zealand on Wednesday raised interest rates by 75 basis points to 4.25% in the face of excessive inflation. New Zealand’s central bank announced this on Wednesday. In October, the bank still decided on a 50-basis-point increase. The bank targets an annual inflation rate of 1 to 3%. However, the latest reading indicated an inflation rate of 7.2%, down slightly from 7.3% a quarter earlier. The Reserve Bank of New Zealand noted on Wednesday that short-term inflation expectations have risen. At the same time, household spending remained on track with high employment, according to the policy body. The New Zealand dollar rose 0.2% to 0.6166 US dollars on Wednesday.

The 6M Euribor decreased with 1 basis point to 2.33% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.70% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Tuesday 22 November 2022

Market Information Tuesday 22 November 2022

The economy of OECD countries grew 0.4 percent in the third quarter, compared to a quarter earlier. With this, growth remains weak for the third quarter in a row, with 0.5 percent growth in the second quarter. Japan and the United Kingdom experienced contraction, the United States returned to 0.6 percent growth after two quarters of contraction, and Germany’s growth picked up from 0.1 to 0.3 percent.

The Chicago Fed National Activity Index returned to negative territory in October after rebounding in previous months. The index fell from +0.17 in September to -0.05 last month. In August, the index was still at +0.10. A positive index indicates growth above the historical average. If the index is negative, it implies growth below trend.

House prices in the Netherlands are increasing at a lower pace. Home prices rose again year-on-year in October, but the year-on-year increase slowed further. Existing owner-occupied houses were 7.8 percent more expensive in October than a year earlier. A month earlier, the increase was 9.4 percent, and in August it was 11.9 percent.

The 6M Euribor increased with 5 basis points to 2.34% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.74% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 21 November 2022

Market Information Monday 21 November 2022

Producer prices in Germany fell for the first time in more than two years in October. This appeared on Monday from figures from Destatis, the German statistical office. On a monthly basis, prices fell 4.2 percent in September. That was the first drop since May 2020.

Dutch consumers were slightly less somber in November than in October, when their confidence reached an all-time low. The Centraal Bureau voor de Statistiek (CBS) published these figures on Monday. Confidence stood at -57 in November, compared to -59 in October. Consumers were somewhat less pessimistic about the economy and willingness to buy was also slightly less negative. At -57, consumer confidence in November was well below its 20-year average of -9.

Investments in tangible fixed assets rose again in September. The Centraal Bureau voor de Statistiek (CBS) reported this on Monday. Capital expenditure was up 4.4 percent year-on-year, after rising 5.0 percent in August. In May and June, however, investment still rose by more than 8 percent per month, while in July there was a marked pause. Investments in buildings and aircraft increased in September.

The 6M Euribor decreased with 2 basis points to 2.29% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.77% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.